Declaring bankruptcy

Bankruptcy is a legal process that can provide relief to honest but unfortunate debtors. When you are in bankruptcy, no unsecured creditor can garnished your gages or initiate any other collection action against you.

However, bankruptcies generally do not affect the rights of secured creditors, i.e., those who have a valid security against your property, such as a car or a house.

A bankruptcy can only be filed through a licensed insolvency trustee, an individual licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer the bankruptcy process.

Note: Your own bankruptcy does not affect the liability of anyone who guaranteed or co-signed a loan on your behalf. Your spouse, for example, may be accountable for liabilities incurred jointly with you. It is, therefore, important to make the licensed insolvancy trustee aware of joint liabilities.